AMD beat Q2 earnings estimates, with strong performance and guidance, leading to a 9.41% increase in shares.

From Nasdaq: 2024-07-31 14:12:00

Advanced Micro Devices (AMD) reported Q2 2024 earnings of 69 cents per share, beating estimates and increasing 19% year over year. Revenues of $5.84 billion also surpassed expectations, fueled by strong Data Center and Client performance. Shares rose 9.41% in pre-market trading on impressive Q3 guidance.

Data Center revenues soared 114.5% YoY to $2.83 billion, with solid GPU and CPU sales. AMD secured major deals with Netflix, Uber, Oracle, and Microsoft. Client segment revenues grew 49.5%, while Gaming segment declined 59%. Embedded segment saw a 41% drop YoY but rose 2% sequentially.

Operating details showed a non-GAAP gross margin expansion to 53.1% YoY and a 170 bps operating margin increase. Operating expenses rose 15.1% YoY while cash flow was strong at $593 million.

Guidance for Q3 includes revenues of $6.7 billion, representing 16% YoY growth. Data Center and Client segments expected to perform well, while Gaming might decline. Gross margin projected at 53.5% with operating expenses around $1.9 billion.

AMD holds a Zacks Rank #3 (Hold) compared to better-ranked stocks like Shopify (SHOP) and Apple (AAPL). Shopify is set to report Q2 2024 results on Aug 7, while Apple will report Q3 fiscal 2024 results on Aug 1.

Looking ahead, AMD’s strong performance in key segments and impressive guidance underscore its positive outlook for the coming quarters. Investors may consider keeping an eye on this technology leader as it continues to navigate the volatile market conditions.



Read more at Nasdaq: AMD Q2 Earnings Beat Estimates, Shares Up on Strong Q3 View